Switzerland Economic Sentiment December 2016

Switzerland: Swiss leading economic indicator unchanged in December

December 23, 2016

Switzerland’s KOF economic barometer—a leading composite indicator for the Swiss economy forecasting a six-month period—remained at November’s 102.2 points in December. As a result, the index remains above the 100-point threshold which indicates the series’ long-run average.

The KOF Swiss Economic Institute commented that the manufacturing industry improved but that it was dragged down by a deterioration in the construction sector. Other industries reported an unchanged outlook. The Institute concluded that the moderate economic expansion in Switzerland is expected to continue in the next six months.

The State Secretariat for Economic Affairs (SECO) expects GDP to expand 1.8% in 2017 and 1.9% in 2018. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.5% in 2017, which is unchanged from last month’s projection. For 2018, the panel expects economic growth to accelerate to 1.7%.

The KOF economic barometer—a leading composite indicator for the Swiss economy forecasting a six-month period—declined in August to 104.1, down from an upward-revised 108.0 in July (previously reported: 106.8).